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You should continue investing because the investments which you make at a lower price today will show appreciation later…

I have invested in Reliance Growth and Reliance Regular Savings Equity. It has been 1.5 years now but I haven't got good returns from it. Should I continue investing or withdraw?
-Sirish Samarth

This is not at all a good time to withdraw funds from the market.
You have chosen good, average funds. But in the past 1.5 years, the experience of most investors would have been disappointing because the markets haven't gone anywhere. It is still important to continue investing in such a market. You will keep facing more disappointments because the markets might not rise in the coming 6-8 months, but you should continue investing because you are able to buy cheap. And after around 2 years, all the cheap investments made today will give you good appreciation.



This article was originally published on December 14, 2011.

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